Kwacha posts more gains against the dollar


THE Kwacha has posted further gains against the US dollar after receiving more support from sellers, according to Cavmont Bank Zambia daily market report. The currency pair opened at K9.850 / K9.900 but was later being quoted at K9.800 / K9.850 by noon. The Kwacha’s recent gains is in stark contrast to other major convertibles and emerging market currencies which have recently come under pressure against the world’s reserve currency. The Kwacha closed at K9.775 / K9.825, K0.76 percent stronger than the day’s opening levels. On money markets,  the bank reported that commercial banks’ aggregate current account balance increased by K45.71 million to K1,599.70 million while the overnight borrowing and lending rate increased by 0.11 percent to 16.49 percent. Total funds traded on Interbank were K157.50 million. The Central Bank was still conducting Open Market Operations (OMO) and was looking to reduce market liquidity by K500 million. Accepted rates were averaging 15 percent and 17.5 percent on seven days and 14 days term deposits respectively. The Lusaka Stock Exchange (LuSE) All Share Index remained unchanged at 4,385.33 points. On the international scene, the bank reported that the price of copper suffered another jolt of $11.50 which drove the selling price of the red metal to $4,809.00 a tonne. The bank further reported that the price of gold also fell by $21.85 to push the selling price of the precious metal to $1,272.02 an ounce. The price of Brent crude oil recovered by a negligible $0.83 and the commodity was now selling at $51.77 a barrel.